Method and apparatus for facilitating electronic commerce through providing cross-benefits during a transaction

ABSTRACT

Accordingly some embodiments, a merchant server receives an indication of acceptance by a customer of an offer for a subsidy from a second merchant of a purchase of at least one item from a first merchant. The customer agrees to participate in an additional transaction with the second merchant in exchange for having the subsidy applied against the purchase from the first merchant. In one embodiment, after selling the at least one item to the customer, the merchant server determines that the customer did not participate in an additional transaction with the second merchant as the customer agreed to, and assesses a penalty against the customer.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is a continuation of U.S. patent applicationSer. No. 12/938,025 filed Nov. 2, 2010 entitled “METHOD AND APPARATUSFOR FACILITATING ELECTRONIC COMMERCE THROUGH PROVIDING CROSS-BENEFITSDURING A TRANSACTION” and issued as U.S. Pat. No. 8,234,164 on Jul. 31,2012, which is a continuation of U.S. patent application Ser. No.11/423,481 filed Jun. 12, 2006 and issued as U.S. Pat. No. 7,827,056 onNov. 2, 2010, which is a continuation of U.S. patent application Ser.No. 09/219,267 filed Dec. 23, 1998 and issued as U.S. Pat. No. 7,831,470on Nov. 9, 2010.

U.S. patent application Ser. No. 09/219,267 is a continuation-in-part ofU.S. patent application Ser. No. 08/943,483 filed Oct. 3, 1997 and nowabandoned entitled “SYSTEM AND METHOD FOR FACILITATING ACCEPTANCE OFCONDITIONAL PURCHASE OFFERS (CPOs)”; which is a continuation-in-part ofU.S. patent application Ser. No. 08/923,683 filed Sep. 4, 1997 andissued as U.S. Pat. No. 6,553,346 on Apr. 22, 2003 entitled “CONDITIONALPURCHASE OFFER (CPO) MANAGEMENT SYSTEM FOR PACKAGES” which is acontinuation-in-part of U.S. patent application Ser. No. 08/889,319filed Jul. 8, 1997 and issued as U.S. Pat. No. 6,085,169 on Jul. 4, 2000entitled “CONDITIONAL PURCHASE OFFER MANAGEMENT SYSTEM”; which is acontinuation-in-part of U.S. patent application Ser. No. 08/707,660filed Sep. 4, 1996 and issued as U.S. Pat. No. 5,794,207 on Aug. 11,1998 entitled “METHOD AND APPARATUS FOR A CRYPTOGRAPHICALLY ASSISTEDCOMMERCIAL NETWORK SYSTEM DESIGNED TO FACILITATE BUYER-DRIVENCONDITIONAL PURCHASE OFFERS”.

U.S. patent application Ser. No. 09/219,267 is also acontinuation-in-part of U.S. patent application Ser. No. 09/100,684filed Jun. 19, 1998 and issued as U.S. Pat. No. 6,898,570 on May 24,2005 entitled “BILLING STATEMENT CUSTOMER ACQUISITION SYSTEM”, which isa continuation-in-part of U.S. patent application Ser. No. 08/982,149filed Dec. 1, 1997 and issued as U.S. Pat. No. 6,196,458 B1 on Mar. 6,2001 entitled “METHOD AND APPARATUS FOR PRINTING A BILLING STATEMENT TOPROVIDE SUPPLEMENTARY PRODUCT SALES”.

U.S. patent application Ser. No. 09/219,267 is also acontinuation-in-part of U.S. patent application Ser. No. 08/994,426filed Dec. 19, 1997 and issued as U.S. Pat. No. 6,694,300 on Feb. 17,2004 entitled “METHOD AND APPARATUS FOR PROVIDING SUPPLEMENTARY PRODUCTSALES TO A CUSTOMER AT A CUSTOMER TERMINAL”, which is acontinuation-in-part of U.S. patent application Ser. No. 08/920,116filed Aug. 26, 1997 and issued as U.S. Pat. No. 6,119,099 on Sep. 12,2000, entitled “METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCTSALES AT A POINT-OF-SALE TERMINAL”, which is a continuation-in-part ofU.S. patent application Ser. No. 08/822,709 filed Mar. 21, 1997 andissued as U.S. Pat. No. 6,267,670 on Jul. 31, 2001 entitled “SYSTEM ANDMETHOD FOR PERFORMING LOTTERY TICKET TRANSACTIONS UTILIZINGPOINT-OF-SALE TERMINALS”.

Each of the above-referenced applications is incorporated by referenceherein in its entirety.

FIELD OF THE INVENTION

The present invention relates to methods and apparatus for facilitatingelectronic commerce.

BACKGROUND OF THE INVENTION

Electronic commerce is becoming more accepted as growing numbers ofcustomers find shopping via the World Wide Web more appealing. However,electronic commerce suffers many problems that have plagued conventionalcommerce. For example, there is a great deal of competition amongmerchants to attract and retain customers that actually make purchases.Price competition is even stronger on the Internet, where customers canmore readily “shop around” and determine the prices offered by variousmerchants.

Even when a customer has browsed a merchant's inventory, he may not makea purchase if an item's price is greater than the customer is willing topay. One way to increase customer willingness to purchase, via the WorldWide Web or otherwise, is to provide discounts on items purchased.Unfortunately, merchants must use discounts sparingly, since reducingpurchase prices likewise reduces profits and the reduced profits may notbe offset by increased sales.

It is known for a merchant to offer promotions to provide an incentivefor customers to make purchases. For example, a merchant may offer a“buy one get one free” promotion whereby a purchase of an item yieldsthe benefit of an additional item at no cost. Similarly, a merchant mayprovide a discount on a purchase in exchange for signing up for a creditcard account provided by the merchant.

It is known to provide a promotion among more than one merchant. Forexample, a first merchant may advertise that if a product is purchased,a second product may be purchased from or given away by a secondmerchant.

It is also known for a promotion to be provided at the point of sale.For example, a web site of a merchant may provide a “banneradvertisement” that allows a customer to go to another site to make asecond purchase.

It would be advantageous to facilitate further electronic commerce in amanner that maintained an acceptable level of profits for merchants yetincreased a customer's willingness to make purchases.

SUMMARY OF THE INVENTION

It is an object of the present invention to facilitate electroniccommerce.

In accordance with the present invention, a merchant server of a firstmerchant receives an indication of items that a customer is to purchasevia a web site. The indication may be, for example, a signal indicatingthat the customer is ready to “check out” his shopping cart of items onthe web site. In response, the merchant server provides an offer for abenefit from a second merchant, which may be referred to as across-benefit. The offer is provided before the items are purchased, andthus the offer is not provided unless and until the customer hasmanifested an intent to make a purchase from the first merchant. Aresponse to the offer is received from the customer. If the responseindicates acceptance of the offer, then the benefit is applied to theitems purchased. For example, the total price paid for the items may bereduced, or the items may even be provided to the customer withoutcharge.

In exchange, the customer agrees to participate in a transaction withthe second merchant. For example, the customer may be required to switchservice providers (e.g. long distance telephone service) or initiate anew service agreement (e.g. sign up for a credit card account). In oneembodiment, the customer's agreement may be secured, such that a penaltyis assessed against the customer if he does not participate in thetransaction as he agreed to.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic illustration of an apparatus for facilitatingelectronic commerce.

FIG. 2 is a schematic illustration of a merchant server of the apparatusof FIG. 1.

FIG. 3 is a representation of a customer database of the merchant serverof FIG. 2.

FIG. 4 is a representation of an item database of the merchant server ofFIG. 2.

FIG. 5 is a representation of a transaction database of the merchantserver of FIG. 2.

FIG. 6 is a representation of a subsidizer database of the merchantserver of FIG. 2.

FIG. 7 is a representation of an offer rules database of the merchantserver of FIG. 2.

FIG. 8 is a representation of an offers database of the merchant serverof FIG. 2.

FIG. 9 is a representation of a record of an offer summary database ofthe merchant server of FIG. 2.

FIG. 10 is a flow chart illustrating an embodiment of a method forproviding an offer for a benefit to a customer that is to purchase itemsfrom a merchant.

FIG. 11 is an exemplary web page.

FIG. 12 is another exemplary web page.

FIGS. 13A and 13B are a flow chart illustrating another embodiment of amethod for providing an offer for a benefit to a customer that is topurchase items from a merchant.

FIGS. 14A and 14B are a flow chart illustrating another embodiment of amethod for providing an offer for a benefit to a customer that is topurchase items from a merchant.

FIG. 15 is a flow chart illustrating another embodiment of a method forproviding an offer for a benefit to a customer that is to purchase itemsfrom a merchant.

FIG. 16 is a flow chart illustrating another embodiment of a method forproviding an offer for a benefit to a customer that is to purchase itemsfrom a merchant.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Applicants have recognized that the acquisition budgets of variousservice providers may be advantageously used to facilitate electroniccommerce. A customer that is purchasing items from a first merchant maybe paid by a second merchant, so that the customer pays a reduced price,or nothing at all, for his desired items. In exchange, the customersigns up or agrees to sign up for a service that is provided by thesecond merchant. Since many service providers are willing to paysignificant amounts of money (e.g. often $50 to $200) to acquire a newcustomer, the ability to acquire a customer by essentially “intervening”in a sale between others can benefit all parties involved. The customeris benefited by the reduced price of his items, the first merchant isbenefited by the increased sales that such an arrangement would bring,and the second merchant is benefited by the acquisition of a newcustomer.

Furthermore, by presenting offers for such “cross-subsidies” only aftera customer is ready to buy items, the merchant may reduce the chancethat customers will merely “bargain shop”, rather than make purchases.

In addition, a number of benefits may be offered besides reduced prices.For example, the first merchant may alternatively provide the customerwith an upsell (e.g. a product upgrade for no additional cost).

Referring to FIG. 1, an apparatus 100 includes a merchant server 110that is in communication with a customer terminal 120 and withsubsidizing merchant servers 130, 140 and 150. The merchant server 110may communicate with the customer terminal 120 and subsidizing merchantservers 130, 140 and 150 via an appropriate network such as theInternet. Each of the customer terminal 120 and with subsidizingmerchant servers 130, 140 and 150 may comprise computers, such as thosebased on the Intel® Pentium® microprocessor, that are adapted tocommunicate via the Internet (e.g. via a modem). Any number ofsubsidizing merchant servers and customer terminals may be incommunication with the merchant server 110.

The merchant server 110 may be a “web server” of a merchant. Themerchant server 110 can generate a web page that may be accessed via theWorld Wide Web and allow purchases from the merchant to be made in amanner known in the art. A customer terminal may appropriately accessthe web page to communicate with the merchant server 110 in a mannerthat is also known to those skilled in the art.

Referring to FIG. 2, the merchant server 110 comprises a processor 200,such as the Intel®Pentium® microprocessor. The processor 200 is incommunication with a data storage device 210, such as an appropriatecombination of magnetic, optical and/or semiconductor memory. Forexample, the data storage device 210 may comprise one or more of a ROM,RAM and hard disk. The processor 200 and the data storage device 210 mayeach be (i) located entirely within a single computer or other computingdevice; (ii) connected to each other by a remote communication medium,such as a serial port cable, telephone line or radio frequencytransceiver; or (iii) a combination thereof. In one embodiment, themerchant server 110 may comprise one or more computers that areconnected to a remote server computer for maintaining databases.

The data storage device 210 stores a program 220 for controlling theprocessor 200. The processor 200 performs instructions of the program220, and thereby operates in accordance with the present invention, andparticularly in accordance with the methods described in detail herein.The program 220 furthermore includes program elements that may benecessary, such as an operating system and “device drivers” for allowingthe processor 200 to interface with computer peripheral devices.Appropriate device drivers and other necessary program elements areknown to those skilled in the art, and need not be described in detailherein.

The storage device 210 also stores (i) a customer database 230, (ii) aitem database 240, (iii) a transaction database 250, (iv) a subsidizerdatabase 260, (v) an offer rules database 270, (vi) an offers database280 and (vii) an offer summary database 290. The databases 230, 240,250, 260, 270, 280 and 290 are described in detail below and depictedwith exemplary entries in the accompanying figures. As will beunderstood by those skilled in the art, the schematic illustrations andaccompanying descriptions of the databases presented herein areexemplary arrangements for stored representations of information. Anumber of other arrangements may be employed besides those suggested bythe tables shown. Similarly, the illustrated entries of the databasesrepresent exemplary information, and those skilled in the art willunderstand that the number and content of the entries can be differentfrom those illustrated herein.

Referring to FIG. 3, a table 300 represents an embodiment of thecustomer database 230 (FIG. 2). The table 300 includes entries 302, 304,306 and 308, each defining a customer that may purchase items via themerchant server 110 (FIG. 1). Those skilled in the art will understandthat the table 300 may include any number of entries. The table 300 alsodefines fields for each of the entries 302, 304, 306 and 308. The fieldsspecify (i) a customer identifier 320 that uniquely identifies thecustomer, (ii) a name 322 of the customer, (iii) a billing address 324of the customer, (iv) credit card information 326 which may be used torender payment in purchasing the items, and (v) an electronic mail(“email”) address 328 for communication with the customer.

Referring to FIG. 4, a table 400 represents an embodiment of the itemdatabase 240 (FIG. 2). The table 400 includes entries 402 and 404, eachdefining an item sold via the merchant server 110 (FIG. 1). Thoseskilled in the art will understand that the table 400 may include anynumber of entries. The table 400 also defines fields for each of theentries 402 and 404. The fields specify (i) a item identifier 420 thatuniquely identifies the item, (ii) an item description 422, (iii) anitem price 424 for which the item is typically sold, and (iv) anavailability 426 of the item which may be based on an inventory level ofthe item.

Referring to FIG. 5, a table 500 represents an embodiment of thetransaction database 250 (FIG. 2). The table 500 includes entries 502,504 and 506, each defining a transaction with the merchant server 110(FIG. 1). Typically, the transaction includes a purchase of items by acustomer. Those skilled in the art will understand that the table 500may include any number of entries. The table 500 also defines fields foreach of the entries 502, 504 and 506. The fields specify (i) atransaction identifier 520 that uniquely identifies the transaction,(ii) a time 522 of the transaction, (iii) the items ordered 524, (iv)credit card information 526 that may define a credit card account thatwas charged to pay for the items purchased, (v) an amount charged 528for the items, (vi) a delivery address 530 for the items, and (vii) acustomer identifier 532 (if any) that identifies the customer that madethe purchase.

Referring to FIG. 6, a table 600 represents an embodiment of thesubsidizer database 260 (FIG. 2). The table 600 includes entries 602,604 and 606, each defining a party (e.g. another merchant) that maysubsidize purchases made via the merchant server 110 (FIG. 1). Thoseskilled in the art will understand that the table 600 may include anynumber of entries. The table 600 also defines fields for each of theentries 602, 604 and 606. The fields specify (i) a subsidizing partyidentifier 620 that uniquely identifies the subsidizing party, (ii) aname 622 of the subsidizing party, (iii) an account 624 used to pay forthe subsidies, and (iv) an amount owed 626 by the subsidizing party tothe merchant.

Referring to FIG. 7, a table 700 represents an embodiment of the offerrules database 270 (FIG. 2). The table 700 includes entries 702, 704,706, 708 and 710, each defining an offer rule. When an offer rule issatisfied during a transaction, the merchant provides an offer for aspecified benefit, such as a subsidy. Those skilled in the art willunderstand that the table 700 may include any number of entries. Thetable 700 also defines fields for each of the entries 702, 704, 706, 708and 710. The fields specify (i) an offer rule identifier 720 thatuniquely identifies the offer rule, (ii) a subsidizing party identifier722 that uniquely identifies the subsidizing party, (iii) a subsidyamount 724, (iv) when the offer rule is effective (i.e. when the offerrule is satisfied), and (v) an additional transaction 728 that isrequired of the customer in exchange for the subsidy. As describedbelow, several types of transactions, such as additional purchases orinitiating service agreements, may be required of the customer.

Referring to FIG. 8, a table 800 represents an embodiment of the offersdatabase 280 (FIG. 2). The table 800 includes entries 802, 804, 806, 808and 810, each defining an offer for a subsidy. The offer was provided toa customer during a transaction of the customer with the merchant. Thoseskilled in the art will understand that the table 800 may include anynumber of entries. The table 800 also defines fields for each of theentries 802, 804, 806, 808 and 810. The fields specify (i) an offeridentifier 820 that uniquely identifies the offer, (ii) a transactionidentifier 822 that uniquely identifies the transaction during which theoffer was provided, (iii) a subsidizing party identifier 824 thatuniquely identifies the subsidizing party, (iv) an identifier of anoffer rule 826 that was satisfied during the transaction, (v) a subsidyamount 828, (vi) a total price 830 that the customer would have to paywithout the subsidy, (vii) a total price 832 that the customer wouldhave to pay with the subsidy, and (viii) whether the offer was accepted834. As described above with reference to FIG. 7, offer rules definespecific subsidies. Thus, the identifier of an offer rule stored infield 826 may be used to determine a corresponding subsidy amount.

Referring to FIG. 9, a table 900 represents a record of an embodiment ofthe offer summary database 290 (FIG. 2). The offer summary database 290typically includes a plurality of records, each defining a summary ofoffers for subsidies that have been provided on behalf of a subsidizingparty. The table 900 includes a subsidizing party identifier 902 thatuniquely identifies the subsidizing party, a total number of offersprovided 904 on behalf of the subsidizing party, a total number of thoseoffers that were accepted 906, and a total amount 908 of the subsidiesdue in connection with accepted offers.

The table 900 also includes entries 910 and 912, each defining offersprovided due to satisfaction of an offer rule of the subsidizing party.Those skilled in the art will understand that the table 900 may includeany number of entries. The table 900 also defines fields for each of theentries 910 and 912. The fields specify (i) an offer rule identifier 920that uniquely identifies the offer rule, (ii) a number 922 of offersprovided due to the offer rule, (iii) a number 924 of these offers thatwere accepted, (iv) an amount 926 of the subsidies due in connectionwith these accepted offers.

Referring to FIG. 10, a flow chart 1000 illustrates an embodiment of amethod for providing an offer for a benefit to a customer that is topurchase items from a merchant. In one embodiment, the illustratedmethod is performed by the merchant server 110 after the customer hasaccessed a web page generated and/or controlled by the merchant server110.

The merchant server 110 receives an indication that the customer is topurchase items from the web site of the merchant (step 1002). Forexample, after a customer accesses the web site, the customer may selectone or more items to purchase, and “click” a button that indicates thatthe customer desires to purchase the selected items. The act of clickingcould generate a signal that the merchant server 110 interprets as anindication that the customer is to purchase the selected items. Inanother embodiment, the act of accessing the web site could generate asignal that the merchant server 110 interprets as an indication that thecustomer is to purchase the selected items. Those skilled in the artwill understand still other types of appropriate indications.

Before the customer purchases the items, the merchant server 110provides the customer with an offer for a subsidy (step 1004). Forexample, the web page may display text describing the subsidy. In oneembodiment, the web page may be dynamically modified to include a buttonthat, when clicked, indicates acceptance of an offer for a subsidy.Alternatively, the offer may be transmitted to the customer via email orother means.

A response to the offer is received from the customer (step 1006). Forexample, the customer may click a button on the web page or click on ahyperlink on the web page. If it is determined that the offer is notaccepted (step 1008), then the transaction is processed conventionally(step 1010). For example, the items are purchased for the conventionaltotal price, and a credit card account of the customer is chargedappropriately.

If it is determined that the offer is accepted (step 1008), then thesubsidy is applied to the items (step 1012) and the items are sold tothe customer with the benefit of the subsidy (step 1014).

Referring to FIG. 11, an exemplary web page 1100 illustrates a possiblemeans for providing an offer for a benefit and receiving an acceptanceof the offer. The web page 1100 illustrates an embodiment in which themerchant sells books via the World Wide Web. A book that the customer isready to purchase is indicated by text 1102, and a quantity of that book(one book in FIG. 11) is indicated by text 1104. A price of the books isindicated by text 1106, and similarly a total price (e.g. the sum ofitem prices and any other prices) due from the customer is indicated bytext 1108.

A button 1110 is clicked by the customer if the customer desires topurchase the specified items and thereby consummate the purchase. Uponclicking the button 1110, the items may be immediately deemed as havingbeen purchased by the customer. A button 1112 is clicked by the customerif the customer desires to accept an offer for a subsidy. Alternatively,actuating the button 1112 may indicate that the customer is interestedin further information regarding an offer for a subsidy, and thecustomer may subsequently indicate whether he accepts the offer.

Referring to FIG. 12, a second exemplary web page 1200 allows thecustomer to provide customer information via a form having fields 1202that receive entered text. The customer information is used in applyingfor a credit card account with a credit card issuer. In one embodiment,the web page 1200 may be displayed after the customer clicks the button1110 of FIG. 11. Information that is entered via the web page 1200 maybe transmitted to the merchant server 110 upon actuation of a button1204. Actuation of the button 1204 may furthermore indicate acceptanceof the offer for the subsidy. For example, actuation of the button 1204may indicate a willingness to apply for a credit card account, or thatthe customer has applied for the credit card account. Conversely,actuation of the button 1206 may indicate rejection of the offer for thesubsidy.

Referring to FIGS. 13A and 13B, a flow chart 1300 illustrates anotherembodiment of a method for providing an offer for a benefit to acustomer that is to purchase items from a merchant. The merchant server110 receives an indication that the customer is ready to purchase itemsfrom the web site of a first merchant (step 1302). A customer mayindicate his readiness to purchase by, for example, selecting items topurchase and actuating a specific button that consummates the purchaseof the items. Before the customer purchases the items, the merchantserver 110 provides the customer with an offer for a subsidy from asecond merchant (step 1304). Subsequently, a response from the customeris received (step 1306).

If it is determined that the offer is not accepted (step 1308), then thetransaction is processed conventionally (step 1310). If however it isdetermined that the offer is accepted (step 1308), then customerinformation is received (step 1312). Such customer information may beused in providing or facilitating an additional transaction that isrequired of the customer in exchange for the subsidy. In one embodimentdescribed in further detail below, in exchange for the subsidy thecustomer agrees to initiate a new service agreement, so that a serviceis provided by the second merchant. Accordingly, the customerinformation may comprise an indication of a service that is provided tothe customer (e.g. whether the customer has cable television service),or a service provider that provides a service to the customer (e.g.which company provides cable television service to the customer). Theadditional transaction may occur after a significant amount of time haselapsed. Accordingly, in one embodiment there is a means for determiningif the future action has occurred.

Furthermore, a penalty may be assessed against the customer if thecustomer does not perform the required additional transaction. Forexample, the subsidy to the customer may be canceled and the transactionmay then be processed conventionally. Alternatively, a penalty fee maybe charged to the customer.

Similarly, a penalty could be assessed if another imposed condition isviolated. For example, a penalty could be assessed if the items arepurchased and then returned. Accordingly, in such an embodiment areturnable purchase is made a non-returnable purchase in exchange forthe subsidy or other benefit.

The customer information may be received from the customer. In oneembodiment, the merchant server 110 can request that the customerprovide customer information. For example, the merchant server 110 maytransmit a form (e.g. via the web site) including questions to beanswered. In response, the merchant server would receive answers to thequestions, and these answers would constitute the customer informationfrom the customer.

In another embodiment, the customer information may be received from aparty other than the customer. For example, information regarding thecustomer may be received from a third-party database (e.g. a list ofaddresses to provide a location of the customer). Alternatively,customer information may be received from an ISP (Internet ServiceProvider), which can provide information such as an Internet address ofthe customer.

In still another embodiment, the customer information may be receivedvia a “cookie” stored on the customer terminal 120 (FIG. 1). Thoseskilled in the art will understand that a great variety of data may bestored in such cookies, and information may be stored in the cookie inresponse to various events such as the web sites that are visited by thecustomer.

The merchant server 110 may verify whether the customer information isaccurate (step 1314). For example, if the information is provided by thecustomer, it can be advantageous to assure that the customer informationis not false. To provide a further incentive for the customer to provideaccurate customer information, a penalty may be assessed against thecustomer if the customer information is not accurate. For example, if itis determined that the customer information is not accurate (step 1316),the subsidy to the customer may be canceled and the transaction isprocessed conventionally (step 1310). Alternatively, a penalty fee maybe charged to the customer if it is determined that the customerinformation is not accurate. In such an embodiment, it may be furtheradvantageous to verify the customer information before the purchase isconsummated. Thus, the threat that the subsidy will not be forthcomingcan give the customer an incentive to provide accurate information.

If it is determined that the customer information is accurate (step1316), then the merchant server 110 determines the amount of the subsidy(step 1318). The subsidy amount is typically stored in the offer rulesdatabase 270 (FIG. 2). The subsidy amount may be, for example, apredetermined amount or a predetermined percentage (e.g. a predeterminedpercentage of the total price). The subsidy amount may also be limited,such that the price charged cannot be lower than zero. For example, asubsidy amount may be “up to $100 off, but no more than the totalprice”.

The subsidy amount is subtracted from the total price of the items (step1320) and the items are sold for the reduced total price (step 1322).Alternatively, instead of the total price being reduced, a price of oneor more items (e.g. items of a certain type or promotional items) may bereduced to provide an incentive to purchase these items. In summary,accepting the subsidy allows the items to be sold to the customer for alesser price, and the items may even be provided to the customer withoutcharge.

Referring to FIGS. 14A and 14B, a flow chart 1400 illustrates anotherembodiment of a method for providing an offer for a benefit to acustomer that is to purchase items from a first merchant. The merchantserver 110 receives a signal indicating that the customer is ready to“check out” his “shopping cart” of items on the web site of the firstmerchant (step 1402). As is understood by those skilled in the art, ashopping cart of items on a web site defines a set of items the customerdesires to purchase. Checking out the shopping cart indicates a desireto proceed with purchasing the selected items.

Before the customer purchases the items, the merchant server 110provides the customer with an offer for a reduction in the total pricein exchange for signing up for a service with a second merchant (step1404). For example, the service may be telephone service, Internetservice, banking services, credit card account services, insuranceservice, securities trading service, satellite television service, orcable television service. Accordingly, the second merchant would be aprovider of such services, and the customer would be requested toparticipate in a transaction (e.g. initiate a service agreement with)with the second merchant.

Subsequently, a response from the customer is received (step 1406). Ifit is determined that the offer is not accepted (step 1408), then thetransaction is processed conventionally (step 1410). If however it isdetermined that the offer is accepted (step 1408), then a currentservice provider of the customer (i.e. a party that provides a specifiedservice to the customer) is determined (step 1412). The customer may beasked to provide information of the current provider, or thisinformation may be determined from other sources. For example, one ormore databases may be accessed to determine the long distance telephoneservice provider of the customer. Alternatively, the second merchant mayallow access to a database of its existing customers.

If it is determined that the customer has a service provider (step1414), and it is determined that the second merchant already providesthe customer with the specified service (step 1416), then thetransaction is processed conventionally (step 1410). If it is determinedthat the customer has a service provider (step 1414), but it isdetermined that the second merchant does not provide the customer withthe specified service (step 1416), then the customer must have a serviceagreement with another service provider. Accordingly, the existingservice agreement is canceled (step 1418).

If it is determined that the customer does not have a service providerof the specified service at all (step 1414), (or if the merchant server110 will cancel or has canceled the existing service agreement) then anew service agreement is initiated with the second merchant (step 1420).Thus, the second merchant has acquired a new customer, either by signingup the customer for a new service or by switching providers of thespecified service that is provided to the customer. In exchange, thetotal price of the shopping cart of items is reduced by the amount ofthe subsidy (step 1422), and the items are sold for this reduced totalprice (step 1424).

Referring to FIG. 15, a flow chart 1500 illustrates another embodimentof a method for providing an offer for a benefit to a customer that isto purchase items from a first merchant. The merchant server 110receives an indication that the customer is ready to purchase items fromthe web site of a first merchant (step 1502). The merchant server 110may also receive customer information (step 1504), as described above.The customer information may comprise, for example, a location of thecustomer or a current service provider of the customer.

A set of subsidies for which the customer may be eligible is determined(step 1506). In one embodiment, the set of subsidies is determined basedon customer information. For example, upon reference to the customerinformation, one or more offer rules may be satisfied. The correspondingsubsidies would then be included in the set of subsidies. In anotherembodiment, the offer rules may be satisfied without reference tocustomer information. For example, an offer rule may be satisfied if thetotal price of the items (or the price of any of the item) is greaterthan a predetermined threshold. In yet another embodiment, one or moresubsidizing merchants may be contacted, customer information may betransmitted to the subsidizing merchants, and in response thesubsidizing merchants may transmit to the merchant server 110 adescription of a subsidy to offer.

Offers for each of the subsidies may be provided to the customer (step1508) for the customer to select one (or more). For example, each offermay be listed on a web page, and the customer must click a hyperlinkcorresponding to his desired offer. The customer selection is received(step 1510) and the corresponding subsidy is applied to the customer'spurchase (step 1512). Alternatively, the customer may be similarlyprompted to select a merchant from a plurality of merchants, and thecustomer would subsequently be provided with an offer for a subsidy fromthe selected merchant.

Referring to FIG. 16, a flow chart 1600 illustrates another embodimentof a method for providing an offer for a benefit. In particular, theillustrated flow chart 1600 shows the exchange of payment among theparties. The merchant server 110 receives an indication that thecustomer is ready to purchase items having a total price (step 1602). Inresponse, the merchant server 110 provides an offer for a subsidy (step1604). The subsidy defines a discount amount that is applied to thecustomer's purchase. The subsidy also defines a spread amount that isretained by the first merchant.

Once the customer acceptance is received (step 1606), the customer'saccount (e.g. a credit card account) is charged by the total amount lessthe discount amount (step 1608). Similarly, an account of the secondmerchant is charged by the sum of the discount amount and the spreadamount. The second merchant may be charged substantially immediately(e.g. immediately after the customer accepts). In another embodiment,the customer may be charged at predefined intervals (e.g. once permonth).

Although the present invention has been described with respect to apreferred embodiment thereof, those skilled in the art will note thatvarious substitutions may be made to those embodiments described hereinwithout departing from the spirit and scope of the present invention.

What is claimed is:
 1. A method comprising: transmitting, by a web server to a customer, an indication of at least one item; transmitting, by the web server to the customer, an indication of a first cost to the customer for the at least one item; receiving, by the web server, an indication that the customer is ready to purchase the at least one item from a first merchant; determining, by the web server, in response to the received indication and before the at least one item is purchased by the customer, a second cost to the customer for the at least one item based on a reduction amount, the second cost being less than the first cost; transmitting, by the web server, in response to the received indication and before the at least one item is purchased by the customer, an offer of a second merchant to reduce the first cost to the second cost in exchange for the customer agreeing to sign up for a service with the second merchant, the offer including an indication of the second cost and the reduction amount; receiving, by the web server, an indication that the customer accepts the offer of the second merchant and agrees to sign up for a service with the second merchant; selling the at least one item to the customer for the second cost; determining by the web server that the customer did not sign up for a service with the second merchant as the customer agreed to; and in response to determining that the customer for the second cost did not sign up for a service with the second merchant as the customer agreed to, assessing by the web server a penalty against the customer in exchange for the reduces associated total cost.
 2. The method of claim 1, in which transmitting the offer comprises transmitting to the customer a web page including a first selectable web page element associated with a first option for the customer to pay the first cost for the at least one item, and a second selectable web page element associated with a second option for the customer to receive an offer to reduce the first cost to the second cost.
 3. The method of claim 1, in which the service comprises a credit card service.
 4. The method of claim 1, in which receiving the indication that the customer is ready to purchase the at least one item from a first merchant comprises: receiving an indication that the customer initiated a checkout process to consummate purchase of the at least one item from the first merchant.
 5. The method of claim 1, further comprising: automatically selecting the offer from a database that includes a plurality of offers.
 6. The method of claim 1, further comprising: receiving, by the web server, customer information from the customer; and verifying accuracy of the customer information.
 7. An apparatus comprising: a processor; and a data storage device in communication with the processor, the data storage device storing instructions configured to direct the processor to perform a method, the method comprising: transmitting to a customer an indication of at least one item; transmitting to the customer an indication of a first cost to the customer for the at least one item; receiving an indication that the customer is ready to purchase the at least one item from a first merchant; determining, in response to the received indication and before the at least one item is purchased by the customer, a second cost to the customer for the at least one item based on a reduction amount, the second cost being less than the first cost; transmitting, in response to the received indication and before the at least one item is purchased by the customer, an offer of a second merchant to reduce the first cost to the second cost in exchange for the customer agreeing to sign up for a service with the second merchant, the offer including an indication of the second cost and the reduction amount; receiving an indication that the customer accepts the offer of the second merchant and agrees to participate in an additional transaction sign up for a service with the second merchant; selling the at least one item to the customer; determining that the customer did not sign up for a service with the second merchant as the customer agreed to; and in response to determining that the customer did not sign up for a service with the second merchant as the customer agreed to, assessing by the web server a penalty against the customer.
 8. The apparatus of claim 7, in which transmitting the offer comprises transmitting to the customer a web page including a first selectable web page element associated with a first option for the customer to pay the first cost for the at least one item, and a second selectable web page element associated with a second option for the customer to receive an offer to reduce the first cost to the second cost.
 9. The apparatus of claim 7, in which the service comprises a credit card service.
 10. The apparatus of claim 7, in which receiving the indication that the customer is ready to purchase the at least one item from a first merchant comprises: receiving an indication that the customer initiated a checkout process to consummate purchase of the at least one item from the first merchant.
 11. The apparatus of claim 7, the instructions being configured to direct the processor to perform: automatically selecting the offer from a database that includes a plurality of offers.
 12. The apparatus of claim 7, the instructions being configured to direct the processor to perform: receiving, by the web server, customer information from the customer; and verifying accuracy of the customer information.
 13. A method, comprising: receiving, by a merchant server, an indication of at least one item that a customer is to purchase from a merchant via a web site, the at least one item having an associated cost for the at least one item, in response to receiving the indication, transmitting, by the merchant server, a web page including an indication of the at least one item to be purchased, an indication of the associated total cost for the at least one item, a first selectable button associated with a first option for the customer to pay the associated total cost for the at least one item, and a second selectable button associated with a second option for the customer to receive an offer for a benefit to reduce the associated total cost; receiving, by the merchant server, a signal indicating selection by the customer of the second option; in response to the received signal and before the at least one item is purchased by the customer, transmitting an offer for a benefit to reduce the associated total cost of the at least one item in exchange for applying for a service account with a service provider, in which the service provider is not the merchant; after receiving the signal and before the at least one item is purchased by the customer, receiving by the merchant server from the customer, an indication of willingness to apply for a service account with a service provider; after receiving the signal, selling the at least one item to the customer; determining, by the merchant server, that the customer did not apply for a service account with the service provider; and in response to determining that the customer did not apply for a service account with the service provider, assessing a penalty against the customer.
 14. The method of claim 13, in which receiving the indication of at least one item that a customer is to purchase from a merchant comprises: receiving an indication that the customer initiated a checkout process via the web site to consummate purchase of the at least one item from the merchant.
 15. The method of claim 13, further comprising: automatically selecting, by the merchant server, the offer from a database that includes a plurality of offers.
 16. The method of claim 13, further comprising: receiving, by the merchant server, customer information from the customer; and verifying accuracy of the customer information.
 17. The method of claim 13, in which assessing the penalty against the customer comprises charging the customer the associated total cost for the at least one item without providing the benefit to the customer.
 18. The method of claim 13, in which the service account comprises a credit card account.
 19. The method of claim 13, in which transmitting the offer for the benefit comprises: transmitting, by the merchant server via the web site, the offer for the benefit.
 20. The method of claim 1, in which assessing the penalty against the customer comprises charging the customer the first cost for the at least one item without applying the reduction amount.
 21. The apparatus of claim 7, in which assessing the penalty against the customer comprises charging the customer the first cost for the at least one item without applying the reduction amount. 